ACC stock outlook weakens as Nomura cuts target to INR 1,000

Nomura kept its Reduce rating on ACC after citing structural challenges, rising input costs and weak cement volumes. Moneycontrol published the analysis on October 30, 2026, citing the brokerage's assessment of ACC's outlook.

Nomura cut its target price by 13 percent to INR 1,000 and reduced its EBITDA estimates for fiscal 2027 through fiscal 2029 by 10 to 15 percent. The brokerage said ACC's turnaround initiatives have yet to translate into a sustained recovery.

Volumes and costs remain obstacles

ACC's adjusted EBITDA in the second quarter of fiscal 2027 came in at INR 3.74 billion, beating Nomura's estimate by 32 percent and Bloomberg's by 17 percent, mainly because realisations were stronger than expected. Cement volumes nevertheless fell 3 percent year over year to 9.7 million tonnes and missed Nomura's estimate by 3 percent.

Blended realisations rose 3 percent sequentially to INR 5,809 per tonne, while blended EBITDA per tonne fell by INR 40 sequentially to INR 386. Raw-material, power and fuel costs per tonne increased 2 percent sequentially, and overall operating costs rose 4 percent.

Nomura expects cement realisations to improve 1 percent sequentially in the third quarter of fiscal 2027 and cementitious volumes to grow 3 percent year over year. It forecasts EBITDA per tonne at about INR 400, but expects higher fuel costs to keep pressure on margins.

ACC expands its cement platform

ACC manufactures cement and ready-mix concrete in India and operates within the Adani Portfolio. The company describes itself as one of India's leading cement producers, with a business built around cement, concrete, sustainability and construction solutions. ACC Limited says its wider Adani Cement platform has a presence across 31 states and union territories.

Indian equity markets remain an important backdrop for cement stocks. Current market reports provide broader market context.

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